8. An increase in the depreciation expense will do which of the following? I. increase net income II. decrease net income III. decrease EBIT IV. increase EBIT A. I only B. Il only C. I and III only D. II and III only E. II and IV only 9. The tax rates are as shown. Nevada Mining currently has taxable income of $97,800. How much additional tax will the firm owe if taxable income increases by $32,000? $ Taxable Income 0 - 50,000 50,001 - 75,000 75,001 - 100,000 100,001 - 335,000 Tax Rate 15% 25% 34% 39% A. $8,080 B. $11,930 C. $12,370 D. $13,696 E. $14,708 10. Cost of goods sold Interest Dividends Depreciation Change in retained earnings Tax rate 2011 $4,878 238 420 789 631 34% What is the operating cash flow for 2011? A. $2,078.00 B. $2,122.42 C. $2,462.58 D. $2,662.00 E. $2,741.42 11. The Widget Co. purchased new machinery three years ago for $4 million. The machinery can be sold to the Roman Co. today for $2 million. The Widget Co.'s current balance sheet shows net fixed assets of $2,500,000, current liabilities of $1,375,000, and net working capital of $725,000. If all the current assets were liquidated today, the company would receive $1.9 million in cash. The book value of the Widget Co.'s assets today is and the market value of those assets is A. $4,600,000; $3,900,000 B. $4,600,000; $3,125,000 C. $5,000,000; $3,125,000 D. $5,000,000; $3,900,000 E. $6,500,000; $3,900,000